BEWARE Ebay Sellers

[HymieP]

This pertains to those who sell "high end" items on Ebay. Here's how the scam goes: Two people work together to bid on an item that is rather high end or expensive with no reserve price. Scam artist #1 bids with a relatively low maximum bid. Scam artist #2 who is working along with #1 bids extremely high (hoping and in most cases scares off all other bidders). As auction nears the close, #2 retracts all bids making way for #1 to win with relatively very little money. End result: seller gets screwed and Ebay does nothing.

Always, and I mean always insert a reserve price on high end, expensive items or you too run the risk of being taken advantage of.
Jamie

[hornetgod]

You need two big bidder's to make the price go up. It's proxy bidding. Are you sure you just didn't have a dumb bidder get cold feet at the last second?

[HymieP]

No this has been going on for some time now. The latest was a gentleman in Flordia who was selling a Cessna airplane. The shill bidder was the winner by some $50,000 and now there's a lawsuit involved. There is only (1) one high bidder not (2) two, the high bidder just bids high, high enough where it scares everyone else away. The low bidder gets the item when the high bidder backs out just hours or minutes from the end of the auction. There have been instances, when the courts have found up to 11 different people involved in this scheme. Just a bunch of crooks out there, sellers beware!

[dennis d]

I can't figure how this would work without a reserve unless high bidder bid against himself.
If low bidder was $1,000.00, and high bidder was going to bid up to $10,000.00 for a high end object.
Wouldn't high ends bid be just over the $1,000.00 since it's proxy bidding ?

I'm just not as smart as these crooks !

[HymieP]

Dennis,
You are correct. I'm not sure either, but in your scenario, yes the high bidder would get the item for just over the $1,000. I think it has to involve more than just a couple of people. Crooks, they're everywhere you look these days!
Jamie

[bjatwood]

Dennis,
These criminals have all sorts of time on their hands when they are in jail to scheme up things! Just recently here in the Omaha area thieves are targeting families that have just lost a loved one and put the deceased obit in the newspaper with funeral and viewing times. When the funeral is goign on and all the neighborhood is at it they break into their homes! How pathectic is that?

[Darthvader]

Almost happened to me on my last auction. Ebay banned the two bidders after the auction closed. I was notified with minutes....got lucky I guess.

Thanks for the info.

[Flash]

Normally when one bids on an item and his bid is way over the current bid, he has actually only bid the next higher tier of bids. This is to "protect" the buyer by not expecting him to over pay since other bids were "lower". He is the highest bidder however not at the amount he bid - yet. He holds the highest bidder until someone continually bids to surpass his original bid - which in this case is excessive to work the scam.

Have you ever bid on something to be instantly "out bid"? Yeah its because someone is holding their highest offer which is over your current bid. You would need to bid until you pass that level. This is how the scam works however you are only allowed to retract before 12 hours or less are left on auction. But the seller is also under this same obligation - he can't cancel within 12 hours of close. LOOPHOLE!

Hell I'm confusing myself...

[XRer]

Originally Posted by Flash

Normally when one bids on an item and his bid is way over the current bid, he has actually only bid the next higher tier of bids. This is to "protect" the buyer by not expecting him to over pay since other bids were "lower". He is the highest bidder however not at the amount he bid - yet. He holds the highest bidder until someone continually bids to surpass his original bid - which in this case is excessive to work the scam.

Have you ever bid on something to be instantly "out bid"? Yeah its because someone is holding their highest offer which is over your current bid. You would need to bid until you pass that level. This is how the scam works however you are only allowed to retract before 12 hours or less are left on auction. But the seller is also under this same obligation - he can't cancel within 12 hours of close. LOOPHOLE!

Hell I'm confusing myself...

You're describing "shill bidding" and its against ebay rules. Report it to ebay if you feel that you were a victim.

[HymieP]

Ebay is the one who initiated this e-mail. It's ongoing and they want everyone to be aware of the scam.